Economic Shocks Wake Crisis-Weary Nations: IMF's Lifeline Under Stress

Sanoj Weeratunge had hoped his tour firm in Sri Lanka would finally overcome the crises of recent years. However, with the Iran war disrupting markets, a 35% hike in fuel prices has led to a business slump of nearly a third.

Sri Lanka, alongside Egypt and Pakistan, belongs to a group of crisis-hit countries that are struggling with rising energy import costs amid war tensions. The government in Colombo has resumed fuel subsidies and adjusted IMF bailout terms to weather the storm.

The IMF is gearing up to provide $20-50 billion in emergency aid. Ex-Governor of Pakistan's central bank, Reza Baqir, highlights the urgency, noting increased oil prices strain already widened current account deficits, escalating import, and debt payments costs.